Paying the Affordable Housing In-Lieu Fee
To comply with the Affordable Housing Ordinance, a developer of a residential development project consisting of two or more units must provide affordable housing or pay the affordable housing in-lieu fee. This page only describes the process for paying the affordable housing in-lieu fee. For more information about ways to provide affordable housing, please see the City of Hayward Muni Code, Chapter 10; Article 17, Affordable Housing Ordinance.
Affordable housing in-lieu fees need to be paid either prior to issuance of a building permit or prior to approval of a final inspection or issuance of an occupancy permit for a residential dwelling unit. The affordable housing in-lieu fee is subject to change and is published annually in the City of Hayward Master Fee Schedule.
Please note: If you decide you wish to pay the in-lieu fee prior to permit issuance, it is the responsibility of the project owner to ensure that payment for the in-lieu fee reaches the Housing Division before permits are issued. All in-lieu fees for projects are subject to a 10% higher rate per habitable square foot if payment is made after permit issuance.
Estimating the Total Fee
The affordable housing in-lieu fee is calculated by multiplying the rate published in the Master Fee Schedule by the total habitable square footage of the project. If your project is less than 10 units, you will also need to multiple that number by the percentage of calculated fee corresponding to the number of units in your project which can be found in Section 40.2 of the Master Fee Schedule.
In-Lieu Fee Payment Process
- Choose how you will comply with the Affordable Housing Ordinance. When you submit a pre-application or planning application for a project, the Housing Division will reach out to you to confirm whether you plan to provide affordable housing units or pay the in-lieu fee as required under the Affordable Housing Ordinance.
- Choose when to pay. If you choose to pay the in-lieu fee, tell us if you would like to:
- Pay the in-lieu fee prior to permit issuance or prior to issuance of certificate of occupancy for each unit. The rate increases by 10% if you choose to pay after the issuance of permits.
- Pay in one-lump sum, pay by lot groupings, or for individual units.
- Please note: Regardless of the timing you choose, it is the responsibility of the project owner to ensure your payment reaches the Housing Division within the timeframe you set to avoid paying a higher fee.
- Request an invoice. Request an invoice when you submit for building permits in case the square footages for the planned units change during the course of the project.
- E-mail email@example.com and copy firstname.lastname@example.org.
- Provide the following information about your project: (1) application number, (2) project address, (3) tract number (if applicable) and (4) lots that you wish to pay for.
- Allow a minimum of 3 business days after receipt of all required information to process your request.
- Please note. If you request an invoice and the information is not yet available in the City's system, we may request that you provide an Excel spreadsheet with the following information: (1) permit application schedule for your project and (2) number of units being developed identified by lot number, address, plan type, and habitable square footage for each unit.
- Submit your payment.
Paying Before Permit Issuance
If you plan to pay before permit issuance, Housing staff must receive your physical check at least one week before you plan to pick-up your permits at City Hall. This ensures Planning and Housing staff have adequate processing time and to ensure your permits will be ready for you on the day you plan to pick them up. E-mail email@example.com to coordinate payment to ensure your check is received on time.
Where to Submit your Payment
- Include the City's invoice number that you are paying on the check or wire.
- By mail. Include "Housing Division" and/or "Attn: Doris Tang" in the address to ensure the check is delivered to the Housing Division. Mail to:
- By wire. Wiring instructions are included on your invoice.
- Drop box. If you use this option, provide scanned copies of the check(s) and e-mail firstname.lastname@example.org on the same day you drop off the check(s) to let Housing Division know you have paid your fee.
- In person. E-mail email@example.com to make an appointment to hand off your check to a member of our Housing staff.
Questions About the In-Lieu Fee
For general questions or if you have questions about the in-lieu fees for your specific project, please contact firstname.lastname@example.org and email@example.com.